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Taiwan Is Home to the World's Fastest-Growing ETF Market

  • Assets invested in the funds have increased 67% to $41 billion
  • Cash-rich insurers, global bond rally helped spur expansion
The Tao Zhu Yin Yuan residential building, bottom left, and the Taipei 101 building, center, stand in this aerial photograph taken in Taipei, Taiwan.

The Tao Zhu Yin Yuan residential building, bottom left, and the Taipei 101 building, center, stand in this aerial photograph taken in Taipei, Taiwan.

Photographer: Billy H.C. Kwok/Bloomberg
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A surge in bond-buying from life insurers has made Taiwan’s exchange-traded fund market the fastest-growing in the world.

Taiwan’s insurers are snapping up ETFs domiciled locally, but comprised mostly of U.S. corporate bonds, as they seek to offset lower yields on other investments. That’s spurred a 67% growth in the ETF market this year -- faster than all the Group of Seven economies as well as China -- pushing its overall size to $41 billion, data compiled by Bloomberg showed.